Nigerian Startup Koolboks Deploys 10,000 Solar Refrigerators in Nigeria, Kenya and Uganda

Pan-African startup Koolboks has deployed more than 10,000 solar-powered refrigerators and freezers across Nigeria, Kenya and Uganda since 2021, as it looks to address refrigeration challenges in communities with limited or unreliable access to electricity.

Founded in 2018 by Ayoola Dominic and Deborah Gael, the company did not initially focus on refrigeration for African markets. Its first product was a portable solar-powered cooler with an integrated sound system aimed at the European leisure sector. However, the founders later moved away from that direction after identifying the widespread impact of energy shortages on food preservation, healthcare services and small businesses across Africa.

Millions of people across the continent continue to face challenges accessing reliable refrigeration, resulting in food spoilage, difficulties storing temperature-sensitive products and reduced business opportunities. Koolboks subsequently repositioned its business around solar-powered refrigeration systems designed for off-grid and weak-grid environments.

According to Dominic, the company’s refrigerators and freezers operate entirely on solar energy and use integrated lithium-ion batteries to maintain cooling during the night and periods of limited sunlight.

“Our units operate entirely on solar energy using integrated lithium-ion batteries, providing reliable 24/7 refrigeration even at night or during periods of low sunlight. The batteries also function as power hubs, enabling users to charge phones or power LED lighting,” he said.

The systems are used by a range of customers, including small businesses and healthcare facilities that lack dependable electricity supplies. The company says precise temperature control is particularly important for preserving vaccines, fish, poultry and other perishable products.

Pay-As-You-Go Financing Model

To make the equipment more accessible, Koolboks offers a pay-as-you-go financing model. Customers make an initial deposit and repay the balance through weekly or monthly mobile money payments.

Each unit is connected through IoT technology, allowing remote monitoring and management. According to the company, the financing model enables customers to obtain refrigeration equipment without collateral or a formal credit history. Ownership is transferred to the customer once repayments are completed, typically within 12 to 24 months.

Nigeria remains Koolboks’ largest market, with adoption concentrated among frozen food vendors and small businesses operating in areas affected by unreliable power supply. The company has also expanded into Kenya and Uganda and plans to enter Mozambique and Ghana within the next 12 to 18 months.

Expanding Beyond Refrigeration

Alongside hardware sales and financing income, Koolboks has introduced additional services aimed at broadening its revenue base. One of these is Koolbuy, a buy-now-pay-later platform that finances appliances from third-party brands, including Samsung and Panasonic, using the company’s existing payment infrastructure. Koolboks earns commissions from sales completed through the platform.

The startup also operates Scrap4New, a programme that allows customers to exchange old refrigerators for discounts on new units. The traded appliances are either refurbished or recycled. Koolboks finances its operations through a combination of equity investment, debt financing and grants. In September 2024, the company secured an US$11 million Series A funding round, bringing its total funding to approximately US$15.4 million.

As it expands into new markets, the company is betting that demand for refrigeration solutions will continue to grow in regions where electricity access remains inconsistent and conventional cooling systems remain difficult or costly to operate.